1. URBAN SETTLEMENTS DEVELOPMENT GRANT PRESENTATION 19 September 2012 NELSON MANDELA BAY METROPOLITAN MUNICIPALITY 1

2. 2 Size ……………………………..1950 km² Population.……………………… 1,1 million - 1,24 million by 2020 Formal Households …...………. 254 007 Indigent Households …………… 44% of households receive at least one social grant Housing Backlog………………… 49 000 Backyard Shacks 22 411 households in Informal Settlements Total………………………………. 71 411 units Number of Informal Settlements..81 Access to basic sanitation …….. 91% Buckets in informal areas …...… Over 23 000 Unemployment …….…………… 28,2% NMBM STATISTICS

3. FINANCIAL PERFORMANCE - 2011/12 - 3

4. USDG FINANCIAL PERFORMANCE 2011/12 Performance Budget R '000Actual Spent % Spent on Budget Human Settlements 97,000,000 77,551,20280% Electricity and Energy 30,000,000 35,390,213118% Roads & Stormwater 173,309,000 211,276,179122% Water Services 57,000,000 68,800,986121% Sanitation Services 113,723,000 101,740,72889% Public Health 31,594,000 30,268,20196% 502,626,000 525,027,509104% 100% of the USDG funding was spent – the remainder 4% was covered from internal funding. 4

5. 2012/13 FINANCIAL ALLOCATION 5

6. 6 URBAN SETTLEMENTS DEVELOPMENT GRANT 2012/13 ALLOCATION METHODOLOGY Allocation: 2012/13:R592 870 000 2013/14:R727 986 000 2014/15:R845 778 000 6

7. 7 URBAN SETTLEMENTS DEVELOPMENT GRANT 2012/13 ALLOCATION METHODOLOGY Total Allocation: R592,87 million - Human Settlements= R165 868 446 - Water Services = R132 401 554 - Sanitation = R232 600 000 - Roads = R 62 000 000 Note: The above allocation is in support of eradication and upgrading of informal settlements. 7

8. 8 USDG ALLOCATION METHODOLOGY Transforming the current township into sustainable human settlements. Provision of bulk services for new development. Acquisition of land for housing delivery. Provide reticulation services for housing delivery: - thereby eradicating buckets 8

9. HUMAN SETTLEMENTS (MAJOR PROJECTS) Project ID Project Title Requested Budget 2012/13 Comments (Project Readines) 20110088Joe Slovo - Uitenhage Phase 1 7,873,950 Contractors are on site, and progressing in line with revised project programme. 20110089Wells Estate Phase 3 - Ext 3,4 & 5 16,603,642 By the mid-October 2012 approximately ±100 empty plots will have been serviced and be available in Extension 3. By the end of January a further approximately ± 143 empty plots will be available in Extension 5. The balance of the 1088 erven will be finished by May 2013. 20110091Khayamnandi Extension 46,908,100 Contractors are on site, and progressing in line with revised project programme. 20110092Missionvale Garden Lots 30,441,250 Contractors are on site, and progressing in line with revised project programme. 20110093Motherwell NU 29 - Stage 3 20,702,800 Contractors are on site, and progressing in line with revised project programme. 20110096Rosedale 6,473,490 Contractors are on site, and progressing in line with revised project programme. 20070267Land Aquisition 20,000,000 Negotiations in progress with willing sellers. 20120055Motherwell NU 30 15,018,000 Currently in tender process. Linked to Bulk Stormwater. 20120051Nkatha Seyidi – Enkuthazweni 1,847,214 Contractors are on site, and progressing in line with revised project programme. 165,868,446 9

10. NON-FINANCIAL PERFORMANCE 10

11. Outcome 8 Central to the provision of integrated and sustainable human settlements are the following Outcome 8 outputs: Output 1 – Upgrading of informal settlements Output 2 – Improving access to basic services Output 3 – Facilitating the provision of Gap Market Units Output 4 – Mobilising well located public land for low- income and affordable housing 11

12. PROPOSED OUTPUTS AND PERFORMANCE - 2011/12 KPIsTARGETACTUAL Number of RDP houses built3 6001 752 built (1 133 houses rectified) Number of erven serviced3 0002 743 Number of social housing units built and FLISP 300- 61 occupied - 347 social housing serviced - 95% of 432 FLISP units services Number of informal settlements upgraded/formalised 1 new Greenfield to be constructed and 4 in situ development areas to be completed 1 new Greenfield (Motherwell NU29 constructed and 4 in situ development areas completed (Zosa Street, Kleinskool, Mandela and Rholihlahla) 12

13. 13 PROPOSED OUTPUTS 2012/13 SERVICE 2012/13 (target) Number of low-cost housing units built3 000 Number of households receiving free basic services100% of qualifying households Number of new households connected to water3 000 Number of new households connected to sanitation3 000 Number of new households connected to electricity4 000 state subsidised and informal houses and 300 non-electrified households % of households on officially surveyed sites connected to electricity 97% % households receiving basic refuse removal services (within the urban edge) 100% Number of sports facilities upgraded1 (Wolfson Stadium) 13

14. ERADICATION OF INFORMAL SETTLEMENTS - incl. Bucket Eradication - 14

15. METHODOLOGY Elimination of informal settlements. Elimination of buckets. Reduction of flooding Provision of serviced sites: – Top structures – Water & Sanitation connections – Waste collection – Basic Roads – Public transport routes – Basic stormwater control – Electrical services 15

16. PLANS TO ERADICATE INFORMAL SETTLEMENTS Key sector plans: Informal Settlements Upgrading Plan. 7-Year Housing Plan (2009 – 2016). Relocation Plan. Land asset management and control. Social Housing Strategy. Spatial Development Framework and Local Spatial Development Framework preparation. NMBM Housing/Rental Strategy with HDA. Bucket Eradication Strategy & Business Plan Services Master Plans 16

17. BUCKET ERADICATION Bucket eradication programme (BEP) strategy: –Integrated approach through the housing delivery programme as approved by NMBM Council. –Elimination of informal settlements by 2016. –Construction of a house = serviced site (W&S etc). BEP = R4 394 m (in terms of business plan submitted to Province and National) – over approx. 5-year period: –Top structure subsidy = R2 357 m – approx. R500 million required per annum. –Services (internal, bulk & treatment) = R2 037 m 17

18. ALIGNMENT WITH HSDG The Municipality prepares serviced sites (USDG) in advance of applying for project approval for house construction. There is a continuous process of three phases which comprises: –Serviced sites –Project application –House construction The above processes are monitored through a readiness matrix. 18

19. INFRASTRUCTURE & ENGINEERING HOUSING PROJECTS PROVISION OF CIVIL ENGINEERING SERVICES(WATER,SEWER,ROADS & STORMWATER) PROJECT DESCRIPTION Project ID Vote Number No ERVEN (Approx) B File no. CONTRACT NUMBER CONSULTA NT Date appointed BULKS IN PLACE Yes / No EIA APPROVED Yes / No I&E PRELIM COMPLETE Yes / No GP & LAYOUT APPROVED Yes / No PRELIM DRAW APPROVED Yes / No FINAL DRAW APPROVED Yes / No COMMENTS NOWARD Storm WaterSewerWater 1Kleinskool Area K37 2003034 6 04164189527575C 5601MDT18-07-2000 Yes - roads are under construction Yes Under Construction 2Kuyga40 2006008 4 041546436301225C5500/102SMM27-08-2008 Yes-roads are under construction Yes Original scope complete, Completion certificate 28 october 2010, Currently invastigating sewer problems in this area 3Missionvale Garden Lots31 2009NHOU269143,500927CE 2778SMM26-08-2005No Yes but not connected Yes yesYes yes Adjudication process completed 4 Metro Infill Areas 1,7,9 2008008 4 2008XCHL 00576591226C5500/181 Kantey & Templer 10-06-2008Yes No- Only in Framesbay & Walmer YesN/AYes Walmer and Framesbay under construction. 5Walmer Area O4 2009NHOU269145371241CE2577MDC20-08-2008Yes Yes,No -in areas where public open spaces are changed Yes Under Construction. 6Motherwell NU2954 2010JCSX 00016 1,000 ph1 2,200 ph2 1231CE 2488 Goba / Izizwe / iliso 27-08-2008NOYes Yes -but layout is being replanned Yes -Ph1 Phase 1(1200 sites) (Internal Civil Engineering Services) Completed. Planning for other services NU 29 phase2 in progress. Contract for Bulk stormwater is under construction. 7Motherwell NU3054 2009NHOU269143,3001232 Goba / Izizwe / iliso 27-06-2008NoYes NoYesNo Finilising town planning layout and awaiting for approval by Council 8 Kwanobuhle Area 9 Ph 2 45 1999019 7 210JCSX 000187001243CE2578Manong27-08-2008NoYes Complete 9 Kwanobuhle Area 10 45 2009NHOU269141,6001233CE 2564 Stemela Bosch 27-08-2008NOYes Complete 10 Joe Modise Peace Village Ph 2 47 2009NHOU269145121230CE 2625 Kantey & Templar 27-08-2008NoYes yesFirst Contract was terminated, a new contractor has been appointed 11 Khayamnandi A & B 52 2009NHOU269149,1901229NAUhambiso27-08-2008NoyesYesNo No-GP Yes-Layout No RoD received November 2010, Detail Design submitted for approval. 12Rosedale49 2009NHOU269145201244NAManong27-08-2008No YesyesYes No Planning - Detail Designs submitted for approval & RoD received. 14St. Albans40 2009NHOU269145001240NAILiso27-08-2008No No-Bulk not connected Yes Yes phase 1. No - Phase 2 Yes yesReceived a negative RoD, the land is not possible to develop 15KwaNobuhle Area 1145 2009NHOU26914622 NALukhozi19-11-2008NoYes No Yes-but to be densified No Planning -Preliminary Designs. EIA in progress & densification of layout is in progress. 16 Mandela Village and Rholihlahla village 16 & 19 15900201 & 2009 NHOU26914 2209/11/1/12/6/146 KV3 Roads will carry stormwater. No proper roads Yes NAYesNONo Detail designs approved, waiting for funds to implement. 17 Wells estate Phase 3 Ext 4 & 5 60 20002/11/1/1/2/6/148 SBA NoyesYes yes Yes Adjudication process completed 18Red Location15 2182/11/1/1/2/6/147 Goba Roads will carry stormwater. No proper roads Yes N/ANo yes NoDetail designs approved, waiting for funds to implement. 19Walmer Area Q14 2009NHOU26914371241 Makhetha 15-10-2010 Roads will carry stormwater. No proper roads YesNoyesNoYesNo These project are still on preliminary stages 20Walmer Area Q24 2009NHOU26914361241 21Walmer Area Q34 2009NHOU26914841241 22Walmer Area G West 14 2009NHOU269146811241 23Walmer Area G West 24 2009NHOU2691412591241 24Airport Valley (walmer Area)4 2009NHOU2691410281241 25 Kwanontshinga & Ekuphumleni 2009NHOU269142962/11/1/1/2/6/336 Arcus Gibb01-06-2011yes No The project is still on preliminary stage 26Jacht Vlakte44 2009NHOU26914 2/11/1/1/2/6/332 Aurecon 22-03-2011 No The project is still on preliminary stage 19

20. ALIGNMENT WITH HSDG …cont. PROVINCIAL & MUNICIPAL CO-ORDINATION Meetings are held monthly to discuss HSDG project management. Reporting being extended to include USDG matters such as: –the readiness matrix, –alignment, –communication issues, –expenditure and deliverables, etc. 20

21. ERADICATION OF INFORMAL SETTLEMENTS - Constraints - 21

22. 22 BUCKET ERADICATION CONSTRAINTS Awaiting response from Department of Human Settlements for the Metro Business Plan on Sanitation programme. Current status was raised at the Ministerial Sanitation Task Team meeting held on 7 June 2012. USDG allocations inadequate to meet the demands of the municipal programme.

23. 23 BUCKET ERADICATION CONSTRAINTS NMBM strategy for bucket eradication is based on the delivery of an integrated human settlement whereby a constructed house will have dignified sanitation for the beneficiary. NMBM has considered various sanitation options to eradicate buckets in informal settlements which led to the proposal to construct communal toilet blocks. –As a result of the high cost, the business plan was developed for an integrated approach to bucket eradication. 23

24. 24 BUCKET ERADICATION CONSTRAINTS Based on the current situation, the NMBM will have to consider an interim position to eradicate buckets while human settlements are being established. Therefore, NMBM will have to revisit its position with regard to an interim communal block sanitation and develop a business plan to support the funding of this approach to the Provincial/ National Sanitation Programme Managers. NMBM will allocate a portion of USDG funding to implement localised alternative sanitation options for informal settlements.

25. 25 CONCLUSION The delivery of an Integrated Human Settlement is key in addressing all service delivery needs, BUT the allocated funding streams must speak directly to this delivery mechanism. The Municipality is committed to the development of integrated sustainable human settlements in terms of the USDG / HSDG.